Firm Stainless Plate Price in Tokyo

Stainless plate supply is tight around Tokyo. The market price increased by 20,000-30,000 yen per tonne to 450,000 yen for hot cut sheet and 570,000 yen for plate mill products in the week. The market accepts the higher price when the makers increased the selling price to cover higher nickel cost. The market expects higher price when the nickel price still increases. Nickel cash price increased to US$ 15 per pound from less than US$ 14 at the end of September at London Metal Exchange. The price reaches record high level of US$ 15 with speculating purchase under firm demand in China and Europe and lower LME inventory though the nickel price was expected to decrease. The users of stainless plate, which are used mainly for producers’ materials including applications like liquid natural gas plant and food processing facilities, cannot shift to chrome series stainless as stainless sheet. With the limited alternative, the demand keeps firm despite of the extremely high nickel and stainless price. Domestic largest stainless maker, Nippon Steel & Sumikin Stainless Steel expanded the plate output capacity by around 30% in August and keeps full capacity operations. The firm increased the plate base price on October 18 and the market is expected to accept the higher price sooner. The price is expected to keep firm under the tighter supply than sheet stainless products.